Digital Music, Internet Literature and Animation Gained More Diversified Revenue Models
digital music
China’s digital music industry has maintained higher growth pace since 2016 than other sub-industries. A couple of reasons combined to fuel the growth, starting with “music plus” and diversified profit models. “Music plus” is improving in way that offline music streaming keeps the music playing and cooperation among online music and short videos, online music platforms and KTV or mini karaoke booths gets deeper, which provides users with more channels and unleashes market vitality. With the support of National Copyright Administration, domestic digital music platforms conducted extensive sublicensing cooperation, generating more diverse market entities with a better competitive environment.
The internet animation enjoys a larger client base, more flexible contents and more stable income structure. In 2018, the scale of China's general animation users exceeded 350 million, of which 219 million were online animation users. The base of internet animation users will expand in the future as high-quality and new contents have seen exponential spread through social media. Meanwhile, the penetration rate of internet animation in the post-80s and post-90s generation is also increasing, providing inspiration for in-depth contents that target at adults. Original series, such as Fox Spirit Matchmaker, Hitori no Shita - the Outcast and The King’s Avatar, are becoming more and more popular among foreign audiences. In 2018, the market scale of internet animation contents (excluding peripheral products) has amounted to 14.16 million Yuan, up by 53% compared to the prior year. Such a rapid growth reflects the fact that users are more willing to consume and China’s original contents are winning broad recognization. In addition, online animation has gained more diversified profit models including advertising, user pay and IP authorization. It is worth noting that the IP authorization income accounted for over 30% in 2018.
The number of internet literature users is also growing rapidly. In 2018, the number totaled 432 million, increasing 54.27 million compared to 2017, and the market scale reached 9.05 billion Yuan. On the one hand, users spend more money, on the other, as internet literature altered its copyright contents, revenue from copyright management also attributed to the growth of internet literature’s expansion.
Another highlight is internet literature’s going out strategy. In 2018, internet literature sites attracted attention from foreign readers with high-quality contents through self-managed overseas sites. The contents have been translated into over ten languages by teams led by Chinese companies. By the end of 2018, the foreign language versions of nearly 70 Chinese online works gained more than 10 million hits, attracting over 20 million readers.
May 27, 2019
Source: Tencent Research Institute
Photo from: 6199pic.com
